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"I Don't Know Anything About Cars"


Raiha
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[COLOR="DarkOrchid"][FONT="Times New Roman"]So the new CEO of GM, or as I call them now 'government motors' admits to knowing absolutely nothing about cars. Mr. Whitacre that is. Is that a white last name or what?

But he'll now be making all the big decisions about the car company the government has recently acquired.

[URL="http://www.bloomberg.com/apps/news?pid=20601109&sid=aQ._YJhEj_Jo"]Behold...The new CEO of GM, leading us into a brave new world of...Yugos![/URL]

I can't say that I'm thrilled about this choice. He claims to know about employees and big businesses, but if you know all that and still have no idea how to decide whether a car design is a good idea or not, you're probably better off sticking to what you know. I.E. The man who buys a candy store and knows nothing about what kinds of candy people want to buy still thinks he can run a candy store by stocking it with nothing but, oh, candy corn.

Are we happy about this? Do we really want to own a car produced by the government? [/FONT][/COLOR]
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[font=franklin gothic medium]Mr. Whitacre is absolutely correct in what he has said.

You will find that in many industries - especially with very large companies - the Chairman often comes in without a huge amount of experience in the relevant field.

A Chairman is [i]not[/i] an operational manager - he (or she) is a strategic manager. He will learn what he has to learn about the specifics of the industry, but generally he won't be dealing with specifics. Instead he'll be taking advice from multiple experts and making longterm strategic decisions that guide the business.

In terms of Government intervention, I really don't know the specifics of what's happening. I have not read into what the Government bail-out actually involves.[/font]
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[INDENT][COLOR="DarkOrchid"][FONT="Times New Roman"]I disagree. I find if someone doesn't have good instincts about a business to start with, it's going to be a very sharp learning curve to pick up and save a company with. GM is floundering just fine on the government read: TAXPAYER money without waiting around for him to choose advice that may or may not be pertinent to the issue.

And yes, the government has bought out GM in an effort to 'save it' from it's own faulty business model. It is now owned entirely by the government. I ask you how legal that is but there you have it.[/FONT][/COLOR][/INDENT]
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According to the article:[quote][FONT="Arial"]Edward E. Whitacre Jr. built AT&T Inc. into the biggest U.S. provider of telephone service over a 43-year-career.[/FONT][/quote]Doesn't sound like someone who knows nothing about business to me. I'm not thrilled about the government being in charge, but I'm more than willing to sit back and give the guy a chance with it.
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[COLOR="DarkOrchid"][FONT="Times New Roman"]Allow me to reiterate the thread title.

He doesn't know anything about cars. He doesn't know anything about the car business.

He might know how to structure and work on a telecommunications business to make it successful. Does he have the right instincts that'll lead him to make informed and intelligent decisions about which cars will be attractive to the consumer or will he listen to a few dozen advisers and then give permission for cars to be produced by committee?[/FONT][/COLOR]
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[quote name='Raiha'][COLOR="DarkOrchid"][FONT="Times New Roman"]Allow me to reiterate the thread title.

He doesn't know anything about cars. He doesn't know anything about the car business.

He might know how to structure and work on a telecommunications business to make it successful. Does he have the right instincts that'll lead him to make informed and intelligent decisions about which cars will be attractive to the consumer or will he listen to a few dozen advisers and then give permission for cars to be produced by committee?[/FONT][/COLOR][/QUOTE]

[font=franklin gothic medium]Refer back to my original point though - he doesn't need to know the nitty gritty about the car business in order to be GM's Chairman. He will learn what he needs to learn, but the vast majority of his efforts will involve strategic decisions.

This is how large corporations operate. Of course it helps if a Chairman has direct experience in that field, but it is [i]more[/i] valuable to have a Chairman who has a strong general business knowledge.

His role will not be to deal with the specifics of "what cars GM produces" as such. His role will likely be even broader - for instance, he'd be more likely to say "We need to restructure our employment agreements" or he'll be looking at how the business can gain efficiencies, or he'll be investigating where the company is at with its engine research (i.e. to look at feasibility of moving to hybrid or whatever else).

In other words, the majority of his role will involve business functions rather than anything to do with automotive design. He might make suggestions on how to decrease production costs or improve distribution networks - but again, this doesn't imply some kind of front line management.

In some ways his lack of involvement with the automotive sector could be of benefit, because he will look on the situation with fresh eyes. In other words, he won't be ideologically shackled by car industry "norms".

As for Government ownership of GM... once again, I don't really know the details so it's hard to comment. However if GM is a public company with shares, then of course Government can purchase those shares. There will be specific acts governing the limitations and rules surrounding this.

Fundamentally you must also make the distinction between Government "owned" and Government "run".

I would suggest that most of GM's management will remain in place or be replaced by outside candidates. But any implication that you have Government bureaucrats sitting in management roles is a bit far-fetched.[/font]
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[font=trebuchet ms] A lot of CEOs and Chairmen become CEOs and Chairmen without detailed knowledge of the business they're assuming power over. It's more about intelligence/ability/etc. more than knowing the ins and outs of everything. If you're the engineer, yes, I'd say you'd need to know a lot about cars, but for someone who is dealing with large project management and business management...I'd say it's not terribly important.

Which I think can be applied to a lot of job situations. A smart, educated person who majored in say... history, would probably be able to jump right into an advertising firm and do well. Most likely better then the average person who majored in marketing and went to the same advertising firm.

Also, GM, lol. [/font]
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[FONT="Arial"][COLOR="Indigo"]I think it's actually better that they picked someone with decent business experience and no knowledge of cars. You know, instead of someone who knows the ins and outs of the auto industry. They'll be more likely to try things that others would balk over since it has [I]never been done that way before[/I].

Old school, or rather people well entrenched in how the industry works would be a mistake in my opinion. They haven't done a good job, obviously, so why pick someone else who is likely to make the same mistakes?

Also, the only way to find out if they can actually do the job required is to give it a go. They already have plenty of experience in the field of business so that's sufficient really. If they can't handle it, then they can consider someone else. [/COLOR][/FONT]
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The chairman isn't the one deciding about the car designs and all that. That goes to the head of the division of each respective car that GM makes. Then, engineers work to make sure the design works and that it is as best as it can be. They keep making things better and improving quality.
At least, that's how its supposed to work. But GM has proven, time and time again, that they are not up to that challenge and they don't do things the way they should be done.
And I would never buy a GM car, unless they proved to me that their quality was up to par with overseas cars.
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[quote name='Elk']
And I would never buy a GM car, unless they proved to me that their quality was up to par with overseas cars.[/quote]

I think you have to take them on a case by case basis. While there are a few foreign auto-makers that are pretty consistent, Hyundai and Toyota come to mind as cars people by and you typically don't hear to many negative things about.

But saying that GM's quality is subpar to anything else is a little harsh.
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[size=1]I agree with pretty much everything James has said, CEOs almost never have to grasp the nitty-gritty of the industry that they're in to be successful administrators of a company. The fact that this man has already proven a successful CEO of AT&T only bodes well for his future running of GM.[/size]

[quote name='chibi-master']They? What, does Gavin secretly control GM's strings from across the ocean? How many corporations is he the puppet master of?![/QUOTE]

[SIZE="1"]All your corporations are belong to us.[/SIZE]
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[quote name='Drizzt Do'urden']
But saying that GM's quality is subpar to anything else is a little harsh.[/QUOTE]

[COLOR="DarkOrchid"][FONT="Times New Roman"]Except for the fact that their quality these days IS sub par and judging by their success as a company, nobody wants to buy their products. There really is no comparison between them and a Japanese company as far as fuel economy, safety, and price go. [/FONT][/COLOR]
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[FONT="Tahoma"][quote name='Gavin][size=1']The fact that this man has already proven a successful CEO of AT&T only bodes well for his future running of GM.[/size][/quote]I completely agree with this sentiment. I'm glad to see them put someone in the position who actually has extensive experience in management. [/FONT]
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[quote name='Drizzt Do'urden']With that logic you must be saying that ALL cars are subpar since nobody is buying much of anything due to the downed economy. [/quote]

[color=deeppink]It's a relative model. How it is doing when compared to the rest of the industry is what would make it sub-par, as par is pretty much defined by the industry.[/color]

[quote]Chrysler folded faster then they did, so you can't base that on the quality of a GM vehicle.[/QUOTE]

[color=deeppink]Um... what do you mean by "that?" GM folding?

If so, I don't see what Chrystler folding has to do with the relationship between GM folding and the quality of a GM vehicle.[/color]
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[quote name='Gavin']
[SIZE="1"]All your corporations are belong to us.[/SIZE][/QUOTE]

[FONT="Franklin Gothic Medium"]Wal-Mart is now offering everyday low prices on GM Automobiles and other various GM products. Only at Wal-Mart.[/FONT]
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[FONT="Tahoma"][quote name='chibi-master']Not even if I pledge eternal loyalty and servitude to the Gavin Corporation?:confused:[/quote]I recall seeing a post somewhere where Gavin said he was in league with Basement Cat. So pledging that is the same as offering up your soul. o_O So you're still in trouble.

All joking aside, I'm not entirely sure how the thread got off on the tangent of [I]I'd never buy a GM[/I]. I have plenty of friends who own vehicles by them and have nothing more than normal upkeep issues. [/FONT]
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[quote name='Sabrina'][FONT="Tahoma"]I recall seeing a post somewhere where Gavin said he was in league with Basement Cat. So pledging that is the same as offering up your soul. o_O So you're still in trouble.

All joking aside, I'm not entirely sure how the thread got off on the tangent of [I]I'd never buy a GM[/I]. I have plenty of friends who own vehicles by them and have nothing more than normal upkeep issues. [/FONT][/QUOTE]

[COLOR="DarkOrchid"][FONT="Times New Roman"]I believe the sentiment was that the cars currently being produced by GM are of a quality and strain that does not quite match up to the foreign models that function better for cheaper with less issues.

If your friend's cars were bought a few years ago or more, they probably don't have the same issues they have now. A friend bought one of their SUVs and had to practically give it back. Lemon.[/FONT][/COLOR]
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